First Principles of Business Law

Making a contract
2. The first essential element of formation: Intention to be legally bound

2.2. How the necessary intention is established




Here's a very basic situation to begin with. Read the facts and the question and then choose the best answer.

A says to B: "I will pay you $20 a week to mow my lawn and sweep up fallen leaves in my garden."

B replies to A: "OK, that's a deal."

Basing your answer on these facts alone, can it be properly inferred that A and B have the intention to be legally bound by this agreement?


(a) Yes, there are sufficient facts to draw this conclusion.


(b) No, there are not enough facts to draw this conclusion.




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